Uganda achieved a significant leap in coffee export earnings and volumes during May, driven by a strong harvest in key growing regions and sustained high global prices. The May coffee shipments reached 793,445 bags of 60 kg—an increase of 44% year‑on‑year—while export earnings soared to US$243.95 million, marking a 92% rise compared to May 2024.
The Ministry of Agriculture, Animal Industry and Fisheries attributes the performance to robust output from the main harvest in Masaka and the southwestern districts, coupled with supportive international market conditions. Robusta, which accounted for around 87% of the total volume, reached 691,176 bags, valued at US$203.5 million. Arabica exports of 102,269 bags generated US$40.45 million—reflecting a near 110% surge in value year‑on‑year.
Despite a slight dip in global prices in May due to improved output from Brazil, Uganda managed to sustain earnings growth through volume expansion. May’s average export price stood at US$5.12 per kilogram, just marginally below April’s US$5.15, but significantly higher than May 2024’s US$3.83.
Over the past 12 months—from June 2024 to May 2025—Ugandan coffee exports totalled 7.43 million bags, generating an impressive US$2.09 billion. This performance represented increases of 22% in volume and 94% in value relative to the previous year.
The government has pursued a proactive strategy to bolster production. A 15‑year agroindustrialisation plan unveiled in the State‑of‑the‑Nation address emphasises high‑yield seedlings, post‑harvest improvements, irrigation expansion and credit support for commercial farmers. These measures, coupled with the integration of UCDA’s functions into the Ministry of Agriculture, underpin the structural push to upscale the sector.
Uganda remains one of Africa’s leading coffee exporters, trailing Ethiopia, and coffee accounts for nearly 20% of its export revenue. In the May crop, European countries continued to dominate the demand landscape—with Italy, Germany and Spain among the main markets—though exports to Sudan, Algeria and other African destinations also showed clear growth.
This rise in coffee export receipts has contributed to macro‑economic resilience. April data showed Uganda’s merchandised export earnings rose to US$1.11 billion, with coffee alone contributing over US$214 million—a jump of 153% compared with April 2024. That month, the trade deficit narrowed sharply, falling from US$303 million to US$127 million.
According to the USDA’s FAS Nairobi report, production is projected to grow modestly through the 2025/26 marketing year, with estimates of green‐bean output for 2024/25 at 6.7 million bags and anticipated growth to 6.88 million bags in 2025/26, supported by good weather and improved crop management.
One of the sector’s evolving trends is the rise of women-led initiatives. In Sironko district, the Bayaaya Specialty Coffee cooperative has expanded membership to over 600 women—about 75% of participants—by offering incentives for female growers and aiming to rebalance gender dynamics in the value chain. The group’s structure promotes shared decision‑making, enabling women to invest in household expenses and gain autonomy.
Given the sustained global demand, strong yield improvements, supportive government policies and growing diversification among exporters and producers, Uganda appears poised to further strengthen its coffee sector contributions. The country has ambitions to scale annual coffee export value from the current US$2 billion towards a target range of US$4 billion. Continued monitoring will be needed around price volatility, global supply dynamics, and compliance with sustainability regulations, particularly in European markets.
Follow Arabian Post
Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.
